Parts of the credit and mortgage markets today were “offered-only.” That means there were no buyers. None. These markets are different from the highly liquid NYSE and NASDAQ where there is always a buyer for every seller and a seller for every buyer, usually within a second or two. Not so with these thinly traded markets. If no one wants to buy, then no one can sell.
This from “The Lord of the Dark Market”, an anonymous highly-placed financial insider quoted by hedge fund manager Bill Fleckenstein.
From the comments
the guys who tip [Fleckenstein] have been eerily prescient… (sometimes his tips prelude major market drops just by a few days)